"You don't buy, if you expect the price to go down."
funds can be just as dumb as unsophisticated individual investors...Vanguard has trillions of dollars to invest...they generally have at least a 5 yr timeline with their investments...they dont quickly jump in and out...and yes they will buy to average down...and yes, they can be just as stupid as anyone else...
blackrock was buying up fcel shares in 2019 in the 20's, 15, 12, 10 etc...they just kept buying like drunken sailors...they did not care how much the pps was steadily dropping...many kept pointing to blackrock's continual purchases as blackrock's confidence in the company...i believed they were accumulating shares and lowering their pps hoping that by some miracle they could make money...but if not, they could at least minimize their losses...
blackrock eventually sold their fcel shares and lost a boatload of money...but with $12.5 trillion in assets, it wasnt even a blip on their screen...it probably didnt even make the slightest dent in their profits...
"You buy more if you expect the price to go up."
you mean like what blackrock did with FCEL?....that didnt work out real well for them...
"You don't buy, if you expect the price to go down."
you do if you want to average down and your crystal ball isnt working...
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